Luka Modric has clinched his long-awaited move to Real Madrid after he completed a medical with the Spanish giants on Monday.

Tottenham announced early on Monday morning that an agreement had been reached with Madrid for the transfer of the Croatia international. The deal is understood to be worth in the region of €37 million.

Modric later put pen to paper on a five-year contract, before being introduced to the Spanish press. He will wear the No. 19 jersey for Madrid this season.

Spurs revealed that the transfer includes a "partnership agreement" that will see future player and coaching exchanges between the two clubs, as well as friendly matches.

"The club can announce that it has signed a partnership agreement with Real Madrid FC and reached agreement for the transfer of Luka Modric, subject to medical, to the Spanish club," read a statement on Tottenham's official website.

"The partnership agreement will see the two clubs working together in respect of players, coaching, best practices and commercial relationships."

Modric flew to Madrid in order to overcome the final obstacle of a White Hart Lane exit that he has pursued for two years. The diminutive midfielder chased a move to Chelsea last summer and has now got his wish to leave Spurs for Madrid.

Daniel Levy, Tottenham chairman, said of Modric's departure: "Luka has been a terrific player for us and, whilst we preferred not to part with him, we are pleased that it is to Real Madrid, a club with which we now look forward to sharing a long and productive partnership."

Official confirmation of the transfer allows Andre Villas-Boas to finally begin the process of introducing one or two of his own targets.

Spurs will use the money from the Modric transfer to fund an improved bid for Shakhtar Donetsk attacker Willian, though the club may not be willing to go as high as the Ukrainians' asking price of £20 million.

A Tottenham source told ESPN: "We are going to replace Modric and the money is available. We are looking for a creative player and Willian at Shakhtar is someone who interests the manager Andre Villas-Boas."

Villas-Boas is also understood to be keen to sign one of his former players at Porto, Joao Moutinho, though the two clubs are believed to be some way apart in their valuation of the player.